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JOYY Reports Second Quarter 2023 Unaudited Financial Results

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JOYY Inc. reports unaudited financial results for Q2 2023. Net revenues decrease to $547.3M from $596.1M YoY. Net income increases to $155.1M from $18.7M YoY. Average mobile MAUs of Bigo Live increase by 18.0% YoY. Total number of paying users of BIGO increases by 5.4% YoY. Non-GAAP net income increases to $97.3M from $51.5M YoY. Company repurchased $214.3M worth of shares in Q2 2023. Q3 2023 net revenues expected to be between $537M and $567M. Quarterly dividend of $0.20 per ADS declared. Share repurchase program authorized to repurchase up to $1B of shares.
Positive
  • Net income increases to $155.1M from $18.7M YoY
  • Average mobile MAUs of Bigo Live increase by 18.0% YoY
  • Total number of paying users of BIGO increases by 5.4% YoY
  • Non-GAAP net income increases to $97.3M from $51.5M YoY
  • Company repurchased $214.3M worth of shares in Q2 2023
  • Q3 2023 net revenues expected to be between $537M and $567M
  • Quarterly dividend of $0.20 per ADS declared
  • Share repurchase program authorized to repurchase up to $1B of shares
Negative
  • Net revenues decrease to $547.3M from $596.1M YoY

SINGAPORE, Aug. 30, 2023 (GLOBE NEWSWIRE) -- JOYY Inc. (NASDAQ: YY) (“JOYY” or the “Company,” formerly known as YY Inc.), a global technology company, today announced its unaudited financial results for the second quarter of 2023.

Second Quarter 2023 Financial Highlights1

  • Net revenues were US$547.3 million, compared to US$596.1 million in the corresponding period of 2022.
  • Net income attributable to controlling interest of JOYY2 was US$155.1 million, compared to US$18.7 million in the corresponding period of 2022.
  • Non-GAAP net income attributable to controlling interest and common shareholders of JOYY3 was US$97.3 million, compared to US$51.5 million in the corresponding period of 2022.

Second Quarter 2023 Operational Highlights

  • Average mobile MAUs of Bigo Live increased by 18.0% to 38.5 million from 32.6 million in the corresponding period of 2022.
  • Average mobile MAUs of Likee was 43.2 million, compared to 57.7 million in the corresponding period of 2022, primarily due to reduced spending on user acquisition via advertisement.
  • Average mobile MAUs of Hago was 5.5 million, compared to 8.5 million in the corresponding period of 2022, primarily due to reduced spending on user acquisition via advertisement.
  • Global average mobile MAUs4 increased by 0.9% to 275.6 million from 273.1 million in the corresponding period of 2022.
  • Total number of paying users of BIGO (including Bigo Live, Likee and imo)5 increased by 5.4% to 1.53 million from 1.45 million in the corresponding period of 2022.
  • Average revenue per paying user of BIGO (including Bigo Live, Likee and imo)6 was US$248.0, compared to US$285.0 in the corresponding period of 2022.

Mr. David Xueling Li, Chairman and Chief Executive Officer of JOYY, commented, “Despite ongoing macroeconomic uncertainties, our strong execution enabled us to deliver a solid financial performance in the second quarter. Through constant product improvements and operational enhancements, BIGO successfully navigated the headwinds and improved its GAAP and non-GAAP operating margin to 12.8% and 16.0%, respectively. As we continued to introduce innovative features, cultivate diverse content, and launch localized operational activities, we further enhanced user experiences, strengthened engagement and drove user growth. As a result, our global MAUs achieved both positive year-over-year and quarter-over-quarter growth. Importantly, Bigo Live increased its MAUs by 18.0% year over year to 38.5 million in the second quarter, sustaining double-digit year-over-year growth for the fifth consecutive quarter.”

“During the second quarter of 2023, we repurchased US$214.3 million worth of our shares. In total, we have returned US$299.7 million to our shareholders through share buybacks and dividends during the first half of this year. This demonstrates our confidence in the Company’s growth prospects and our commitment to reward the long-term support of our shareholders. Going forward, we will continue to prioritize initiatives that align with our long-term strategies. With our proven execution capabilities, we are well-positioned to seize growth opportunities and generate value for our shareholders.”

Second Quarter 2023 Financial Results

NET REVENUES

Net revenues were US$547.3 million in the second quarter of 2023, compared to US$596.1 million in the corresponding period of 2022.

Live streaming revenues were US$477.0 million in the second quarter of 2023, compared to US$565.2 million in the corresponding period of 2022, primarily due to the decrease in the average revenue per paying user of BIGO, as global macroeconomic uncertainties and the appreciation of U.S. dollars against certain other local currencies negatively affected users’ paying activities.

Other revenues increased by 128.0% to US$70.4 million in the second quarter of 2023 from US$30.9 million in the corresponding period of 2022.

COST OF REVENUES AND GROSS PROFIT

Cost of revenues decreased by 7.4% to US$349.6 million in the second quarter of 2023 from US$377.7 million in the corresponding period of 2022. Revenue-sharing fees and content costs were US$222.6 million in the second quarter of 2023, compared to US$247.0 million in the corresponding period of 2022.

Gross profit was US$197.8 million in the second quarter of 2023, compared to US$218.4 million in the corresponding period of 2022. Gross margin was 36.1% in the second quarter of 2023, compared to 36.6% in the corresponding period of 2022.

OPERATING EXPENSES AND INCOME

Operating expenses were US$191.7 million in the second quarter of 2023, compared to US$185.0 million in the corresponding period of 2022. Among the operating expenses, sales and marketing expenses decreased to US$87.2 million in the second quarter of 2023 from US$98.4 million in the corresponding period of 2022, primarily due to the Company’s effective control over marketing expenses and optimization of overall sales and marketing strategies, as the Company reduced spending on user acquisition via advertisement and focused on monetization for Likee and Hago. Research and development expenses increased to US$75.5 million in the second quarter of 2023 from US$62.9 million in the corresponding period of 2022, primarily due to increased personnel-related expenses.

Operating income was US$9.4 million in the second quarter of 2023, compared to operating income of US$38.7 million in the corresponding period of 2022. Operating income margin was 1.7% in the second quarter of 2023, compared to operating income margin of 6.5% in the corresponding period of 2022.

Non-GAAP operating income7 was US$34.4 million in the second quarter of 2023, compared to US$59.9 million in the corresponding period of 2022. Non-GAAP operating income margin8 was 6.3% in the second quarter of 2023, compared to 10.0% in the corresponding period of 2022.

NET INCOME

Net income attributable to controlling interest of JOYY was US$155.1 million in the second quarter of 2023, compared to net income of US$18.7 million in the corresponding period of 2022. Net income margin was 28.3% in the second quarter of 2023, compared to net income margin of 3.1% in the corresponding period of 2022, mainly due to realized gains from the disposal of certain equity investment during the quarter as announced on April 28,2023, increased interest income driven by higher market interest rates, and foreign currency exchange gains.

Non-GAAP net income attributable to controlling interest and common shareholders of JOYY was US$97.3 million in the second quarter of 2023, compared to US$51.5 million in the corresponding period of 2022. Non-GAAP net income margin9 was 17.8% in the second quarter of 2023, compared to non-GAAP net income margin of 8.6% in the corresponding period of 2022.

NET INCOME PER ADS

Diluted net income per ADS10 was US$2.02 in the second quarter of 2023, compared to diluted net income per ADS of US$0.23 in the corresponding period of 2022.

Non-GAAP diluted net income per ADS11 was US$1.29 in the second quarter of 2023, compared to US$0.65 in the corresponding period of 2022.

BALANCE SHEET AND CASH FLOWS

As of June 30, 2023, the Company had cash and cash equivalents, restricted cash and cash equivalents, short-term deposits, restricted short-term deposits and short-term investments of US$3,803.4 million. For the second quarter of 2023, net cash from operating activities was US$61.8 million.

SHARES OUTSTANDING

As of June 30, 2023, the Company had a total of 1,239.8 million common shares outstanding, representing the equivalent of 62.0 million ADSs assuming the conversion of all common shares into ADSs.

Business Outlook

For the third quarter of 2023, the Company expects net revenues to be between US$537 million and US$567 million. This forecast reflects the Company’s current and preliminary views on the market, operational conditions and business strategies, which are subject to changes, particularly as to the potential impact from increasing macroeconomic uncertainties.

Quarterly Dividend

The Company’s quarterly dividend policy adopted on November 16, 2020 remained in effect as of the date hereof, pursuant to which the board of directors has accordingly declared a dividend of US$0.20 per ADS, or US$0.01 per common share, for the second quarter of 2023, which is expected to be paid on October 13, 2023 to shareholders of record as of the close of business on September 26, 2023. The ex-dividend date will be September 25, 2023.

Recent Developments

Share Repurchase Program

In November 2021, the Company announced that its board of directors has authorized a share repurchase plan under which the Company may repurchase up to US$1 billion of its shares between November 2021 and November 2022 (the “2021 Share Repurchase Program”). In November 2022, the Company’s board of directors authorized the continued usage of the unutilized quota under the 2021 Share Repurchase Program, which amounted to US$800 million then, for another 12-month period beginning from the end of November 2022. During the second quarter of 2023, the Company had repurchased US$214.3 million of its shares pursuant to the 2021 Share Repurchase Program, as amended.

Conference Call Information

The Company will hold a conference call at 9:00 PM U.S. Eastern Time on Tuesday, August 29, 2023 (9:00 AM Singapore/Hong Kong Time on Wednesday, August 30, 2023). Details for the conference call are as follows:

Event Title: JOYY Inc. Second Quarter 2023 Earnings Conference Call
Conference ID: #10033187

All participants may use the link provided below to complete the online registration process in advance of the conference call. Upon registration, each participant will receive a set of participant dial-in numbers, the Direct Event passcode, and a unique PIN by email.

PRE-REGISTER LINK: https://s1.c-conf.com/diamondpass/10033187-fh8t65.html

A live and archived webcast of the conference call will also be available at the Company's investor relations website at https://ir.joyy.com.
The replay will be accessible through September 6, 2023, by dialing the following numbers:

United States:1-855-883-1031
Singapore:800-101-3223
Hong Kong:800-930-639
Conference ID:#10033187
  

About JOYY Inc.

JOYY is a leading global technology company with a mission to enrich lives through technology. JOYY currently operates several social products, including Bigo Live for live streaming, Likee for short-form videos, Hago for multiplayer social networking, an instant messaging product, and others. The Company has created a highly engaging and vibrant user community for users across the globe. JOYY’s ADSs have been listed on the NASDAQ since November 2012.

Safe Harbor Statement

This press release contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates” and similar statements. Among other things, the business outlook and quotations from management in this press release, as well as JOYY’s strategic and operational plans, contain forward-looking statements. JOYY may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission (“SEC”), in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about JOYY’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: JOYY’s goals and strategies; JOYY’s future business development, results of operations and financial condition; the expected growth of the global online communication social platform market; the expectation regarding the rate at which to gain active users, especially paying users; JOYY’s ability to monetize the user base; fluctuations in global economic and business conditions; the impact of the COVID-19 to JOYY’s business operations and the global economy; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in JOYY’s filings with the SEC. All information provided in this press release and in the attachments is as of the date of this press release, and JOYY does not undertake any obligation to update any forward- looking statement, except as required under applicable law.

Use of Non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). JOYY uses non-GAAP operating income, non-GAAP operating (loss) margin, non-GAAP net income (loss) attributable to controlling interest of JOYY, non-GAAP net income (loss) margin attributable to controlling interest of JOYY, non-GAAP net income (loss) attributable to common shareholders of JOYY, and basic and diluted non-GAAP net income (loss) per ADS, which are non-GAAP financial measures. Non-GAAP operating income (loss) is operating income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, and gain (loss) on disposal of subsidiaries and business. Non-GAAP operating (loss) margin is non-GAAP operating income as a percentage of net revenues. Non-GAAP net income (loss) is net income (loss) excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments (referring to share of income (loss) from equity method investments resulting from non-recurring or non-cash items of the equity method investments), gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, and income tax effects of the above non-GAAP reconciling items. Non-GAAP net income (loss) attributable to controlling interest of JOYY is net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net (loss) income attributable to non-controlling interest shareholders. Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues. Non-GAAP net income (loss) attributable to common shareholders of JOYY is net income (loss) attributable to common shareholders of JOYY excluding share-based compensation expenses, impairment of goodwill and investments, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders and income tax effects of above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for the net income (loss) attributable to non-controlling interest shareholders. After the non-GAAP adjustment, non-GAAP net income (loss) attributable to controlling interests of JOYY is equal to the non-GAAP net income (loss) attributable to common shareholders of JOYY. Basic and diluted non-GAAP net income (loss) per ADS is non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of basic and diluted net income per ADS. The Company believes that separate analysis and exclusion of the non-cash impact of above reconciling items adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measure for planning, forecasting and measuring results against the forecast. The Company believes that non-GAAP financial measure is useful supplemental information for investors and analysts to assess its operating performance without the non-cash effect of (i) share-based compensation expenses and amortization of intangible assets from business acquisitions, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds’ amortization to face value, which have been and will continue to be significant recurring expenses in its business, (ii) impairment of goodwill and investments, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments, and accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders, which may not be recurring in its business, and (iii) income tax expenses and non-GAAP adjustments for net income (loss) attributable to non-controlling interest shareholders, which are affected by the above non-GAAP reconciling items. However, the use of non-GAAP financial measures has material limitations as an analytical tool. One of the limitations of using non-GAAP financial measures is that they do not include all items that impact the Company’s net income (loss) for the period. In addition, because non-GAAP financial measures are not measured in the same manner by all companies, they may not be comparable to other similar titled measures used by other companies. In light of the foregoing limitations, you should not consider non-GAAP financial measure in isolation from or as an alternative to the financial measure prepared in accordance with U.S. GAAP.

The presentation of these non-GAAP financial measures is not intended to be considered in isolation from, or as a substitute for, the financial information prepared and presented in accordance with U.S. GAAP. For more information on these non-GAAP financial measures, please see the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release.

Investor Relations Contact

JOYY Inc.
Jane Xie/Maggie Yan
Email: joyy-ir@joyy.com

ICR, Inc.
Robin Yang
Email: joyy@icrinc.com

1 On November 16, 2020, the Company entered into definitive agreements with Baidu, Inc. (“Baidu”). Pursuant to the agreements, Baidu would acquire JOYY’s domestic video-based entertainment live streaming business (“YY Live”), which includes YY mobile app, YY.com website and PC YY, among others, for an aggregate purchase price of approximately US$3.6 billion in cash, subject to certain adjustments. Subsequently, the sale was substantially completed on February 8, 2021, with certain matters remaining to be completed in the future, including necessary regulatory approvals from government authorities. As a result, the historical financial results of YY Live are reflected in the Company’s consolidated financial statements as discontinued operations and the Company ceased consolidation of YY Live business since February 8, 2021. On August 22, 2022, the Company announced that it has entered into a share subscription agreement with Shopline Corporation Limited (“Shopline”). As a result of and upon the closing of the transaction, the financial results of Shopline have been fully consolidated by the Company since September 6, 2022. The financial information and non-GAAP financial information disclosed in this press release is presented on a continuing operations basis, unless otherwise specifically stated.

For the avoidance of confusion, the continuing operations for the three months ended June 30, 2022, March 31, 2023 and June 30, 2023 and for the six months ended June 30, 2022 and June 30, 2023, as presented in this press release, primarily consisted of BIGO, excluding YY Live.

2 Net income (loss) attributable to controlling interest of JOYY is net income (loss) less net (loss) income attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders.

3 Non-GAAP net income (loss) attributable to controlling interest of JOYY is a non-GAAP financial measure, which is defined as net income (loss) attributable to controlling interest of JOYY excluding share-based compensation expenses, impairment of goodwill and investment, amortization of intangible assets from business acquisitions, gain (loss) on disposal of subsidiaries and business, gain (loss) on disposal and deemed disposal of investments, gain (loss) on fair value change of investments, reconciling items on the share of equity method investments which refer to those similar non-GAAP reconciling items of the Company, gain (loss) on extinguishment of debt and derivative, interest expenses related to the convertible bonds amortization to face value, income tax effects of the above non-GAAP reconciling items and adjustments for non-GAAP reconciling items for net (loss) income attributable to non-controlling interest shareholders. These adjustments amounted to US$57.8 million and US$32.8 million in the second quarter of 2023 and 2022, respectively. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

4 Refers to mobile average monthly active users of the social entertainment platforms operated by the Company, including Bigo Live, Likee, imo and Hago. Average mobile MAU for any period is calculated by dividing (i) the sum of the Company’s mobile active users for each month of such period, by (ii) the number of months in such period.

5 The number of paying users during a given period is calculated as the cumulative number of registered user accounts that have purchased virtual items or other products and services on platforms including Bigo Live, Likee and imo at least once during the relevant period.

6 Average revenue per user is calculated by dividing our total revenues from live streaming on platforms including Bigo Live, Likee and imo during a given period by the number of paying users for the Company’s live streaming services on these platforms for that period.

7 Non-GAAP operating income (loss) is a non-GAAP financial measure, which is defined as operating income (loss) excluding share-based compensation expenses, amortization of intangible assets from business acquisitions, impairment of goodwill and investments and gain on disposal of subsidiaries and business. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

8 Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP operating income (loss) as a percentage of net revenues. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

9 Non-GAAP net income (loss) margin is non-GAAP net income (loss) attributable to controlling interest of JOYY as a percentage of net revenues.

10 ADS is American Depositary Share. Each ADS represents twenty Class A common shares of the Company. Diluted net income (loss) per ADS is net income (loss) attributable to common shareholders of JOYY divided by weighted average number of diluted ADS.

11 Non-GAAP diluted net income (loss) per ADS is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) attributable to common shareholders of JOYY divided by weighted average number of ADS used in the calculation of diluted net income (loss) per ADS. Please refer to the section titled “Use of Non-GAAP Financial Measures” and the table captioned “JOYY Inc. Unaudited Reconciliation of GAAP and Non-GAAP Results” near the end of this press release for details.

 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(All amounts in thousands, except share, ADS and per ADS data)
       
  December 31,  June 30, 
  2022  2023 
  US$  US$ 
Assets      
Current assets      
Cash and cash equivalents 1,214,449  759,234 
Restricted cash and cash equivalents 303,370  312,502 
Short-term deposits 2,360,545  2,314,160 
Restricted short-term deposits 47,741  67,243 
Short-term investments 362,640  350,283 
Accounts receivable, net 117,927  120,995 
Amounts due from related parties 1,794  803 
Prepayments and other current assets(1) 236,183  226,935 
       
Total current assets 4,644,649  4,152,155 
       
Non-current assets      
Long-term deposits -  40,000 
Investments 660,404  516,185 
Property and equipment, net 343,201  341,294 
Land use rights, net 330,005  313,943 
Intangible assets, net 398,300  365,676 
Right-of-use assets, net 33,196  31,684 
Goodwill 2,649,307  2,649,251 
Other non-current assets 12,591  10,602 
       
Total non-current assets 4,427,004  4,268,635 
       
Total assets 9,071,653  8,420,790 
       
       
Liabilities, mezzanine equity and shareholders’ equity      
Short-term loan 37,270  55,242 
Accounts payable 56,000  55,538 
Deferred revenue 86,014  80,533 
Advances from customers 3,532  4,126 
Income taxes payable 78,103  83,358 
Accrued liabilities and other current liabilities(1) 2,360,002  2,333,501 
Amounts due to related parties 3,225  2,119 
Lease liabilities due within one year 12,451  10,562 
Convertible bonds         435,087  405,130 
       
Total current liabilities 3,071,684  3,030,109 
       
Non-current liabilities      
Convertible bonds 401,173  - 
Lease liabilities 21,601  21,924 
Deferred revenue 9,765  17,314 
Deferred tax liabilities 64,262  58,230 
Other non-current liabilities         436  - 
       
Total non-current liabilities 497,237  97,468 
       
Total liabilities 3,568,921  3,127,577 
       


 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
     
  December 31, June 30,
  2022 2023
  US$ US$
     
Mezzanine equity 91,366  94,666 
     
Shareholders’ equity    
Class A common shares (US$0.00001 par value; 10,000,000,000 and 10,000,000,000 shares authorized, 1,317,840,464 shares issued and 1,066,177,028 shares outstanding as of December 31, 2022; 1,317,840,464 shares issued and 913,319,398 shares outstanding as of June 30, 2023, respectively) 13  9 
Class B common shares (US$0.00001 par value; 1,000,000,000 and 1,000,000,000 shares authorized, 326,509,555 and 326,509,555 shares issued and outstanding as of December 31, 2022 and June 30, 2023, respectively) 3  3 
Treasury Shares (US$0.00001 par value; 251,663,436 and 404,521,066 shares held as of December 31, 2022 and June 30, 2023, respectively) (655,141) (874,871)
Additional paid-in capital 3,277,978  3,251,927 
Statutory reserves 32,536  32,138 
Retained earnings 2,685,063  2,795,726 
Accumulated other comprehensive loss (162,235) (233,366)
     
Total JOYY Inc.’s shareholders’ equity 5,178,217  4,971,566 
     
Non-controlling interests 233,149  226,981 
     
Total shareholders’ equity 5,411,366  5,198,547 
     
Total liabilities, mezzanine equity and shareholders’ equity 9,071,653  8,420,790 
     
(1)JOYY has ceased consolidation of YY Live business since February 8, 2021 and classified and presented all the related assets and liabilities related to YY Live business on a net basis within prepayments and other current assets. The consideration received by the Company to date has recorded as advance payments received within accrued liabilities and other current liabilities.


 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(All amounts in thousands, except share, ADS and per ADS data)
           
  Three Months Ended Six Months Ended
  June 30, March 31, June 30, June 30, June 30,
  2022 2023 2023 2022 2023
  US$ US$ US$ US$ US$
Net revenues          
Live streaming(1) 565,239  520,393  476,981  1,155,338  997,374 
Others 30,859  63,235  70,353  64,540  133,588 
           
Total net revenues 596,098  583,628  547,334  1,219,878  1,130,962 
           
Cost of revenues(2) (377,671) (379,002) (349,566) (800,295) (728,568)
           
Gross profit 218,427  204,626  197,768  419,583  402,394 
           
Operating expenses(2)          
Research and development expenses (62,876) (75,775) (75,540) (126,974) (151,315)
Sales and marketing expenses (98,415) (97,599) (87,205) (202,782) (184,804)
General and administrative expenses (23,680) (31,969) (28,966) (55,775) (60,935)
           
Total operating expenses (184,971) (205,343) (191,711) (385,531) (397,054)
           
Other income 5,286  3,248  3,382  11,027  6,630 
           
Operating income 38,742  2,531  9,439  45,079  11,970 
           
Interest expenses (3,356) (3,109) (3,057) (6,425) (6,166)
Interest income and investment income 17,942  44,135  46,602  36,161  90,737 
Foreign currency exchange gains (losses), net 12,509  (9,921) 20,316  9,145  10,395 
(Loss) gain on disposal and deemed disposal of investments (393) (213) 77,737  1,525  77,524 
Gain (loss) on fair value change of investments 1,282  1,285  (2,235) (18,850) (950)
Gain on extinguishment of debt and derivative 4,017  -  -  6,132  - 
           
Income before income tax expenses 70,743  34,708  148,802  72,767  183,510 
           
Income tax expenses (22,944) (8,158) (5,382) (22,139) (13,540)
           
Income before share of (loss) income in equity method investments, net of income taxes 47,799  26,550  143,420  50,628  169,970 
           
Share of (loss) income in equity method investments, net of income taxes (32,837) (6,606) 3,885  (68,526) (2,721)
           
Net income (loss) 14,962  19,944  147,305  (17,898) 167,249 
           
Net loss attributable to the non-controlling interest shareholders and the mezzanine equity classified as non-controlling interest shareholders 3,689  8,042  7,798  9,072  15,840 
           
Net income (loss) attributable to controlling interest of JOYY Inc. 18,651  27,986  155,103  (8,826) 183,089 
           
Accretion of subsidiaries’ redeemable convertible preferred shares to redemption value (1,250) (1,566) (1,566) (2,500) (3,132)
Cumulative dividend on subsidiary’s Series A Preferred Shares (1,000) (1,000) (1,000) (2,000) (2,000)
           
Net income (loss) attributable to common shareholders of JOYY Inc. 16,401  25,420  152,537  (13,326) 177,957 
           


 
JOYY INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (CONTINUED)
(All amounts in thousands, except share, ADS and per ADS data)
               
  Three Months Ended Six Months Ended
  June 30,  March 31,  June 30,  June 30, June 30, 
  2022  2023  2023  2022 2023 
  US$  US$  US$  US$ US$ 
               
Net income (loss) per ADS              
——Basic 0.23  0.36  2.27  (0.18) 2.58 
——Diluted 0.23  0.35  2.02  (0.18) 2.33 
               
Weighted average number of ADS used in calculating net income (loss) per ADS              
——Basic 71,893,282  70,451,631  67,273,951  72,604,421  68,854,013 
——Diluted 72,586,310  80,846,062  76,872,137  72,604,421  78,845,472 
               
               
(1) Live streaming revenues by geographical areas were as follows:
               
  Three Months Ended Six Months Ended
  June 30,  March 31,  June 30,  June 30, June 30, 
  2022  2023  2023  2022 2023 
  US$  US$  US$  US$ US$ 
               
Mainland China 122,845  108,773  67,535  238,873  176,308 
Others 442,394  411,620  409,446  916,465  821,066 
               
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
               
  Three Months Ended Six Months Ended
  June 30,  March 31,  June 30,  June 30, June 30, 
  2022  2023  2023  2022 2023 
  US$  US$  US$  US$ US$ 
               
Cost of revenues 1,344  1,236  1,025  5,889  2,261 
Research and development expenses 5,093  5,761  5,526  11,503  11,287 
Sales and marketing expenses 282  234  320  533  554 
General and administrative expenses 2,026  2,108  2,227  5,356  4,335 
               


 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(All amounts in thousands, except share, ADS and per ADS data)
           
  Three Months Ended Six Months Ended
  June 30, March 31, June 30, June 30, June 30,
  2022 2023 2023 2022 2023
  US$ US$ US$ US$ US$
           
Operating income 38,742  2,531  9,439  45,079  11,970 
Share-based compensation expenses 8,745  9,339  9,098  23,281  18,437 
Amortization of intangible assets from business acquisitions 12,365  15,890  15,890  24,774  31,780 
           
Non-GAAP operating income 59,852  27,760  34,427  93,134  62,187 
           
           
Net income (loss) 14,962  19,944  147,305  (17,898) 167,249 
Share-based compensation expenses 8,745  9,339  9,098  23,281  18,437 
Amortization of intangible assets from business acquisitions 12,365  15,890  15,890  24,774  31,780 
Loss (gain) on disposal and deemed disposal of investments 393  213  (77,737) (1,525) (77,524)
(Gain) loss on fair value change of investments (1,282) (1,285) 2,235  18,850  950 
Gain on extinguishment of debt and derivative (4,017) -  -  (6,132) - 
Interest expenses related to the convertible bonds’ amortization to face value 619  578  528  1,248  1,106 
Income tax effects on non-GAAP adjustments 3,833  (2,311) (3,128) (685) (5,439)
Reconciling items on the share of equity method investments 12,774  724  (3,572) 23,917  (2,848)
           
Non-GAAP net income 48,392  43,092  90,619  65,830  133,711 
           
           
Net income (loss) attributable to common shareholders of JOYY Inc. 16,401  25,420  152,537  (13,326) 177,957 
Share-based compensation expenses 8,745  9,339  9,098  23,281  18,437 
Amortization of intangible assets from business acquisitions 12,365  15,890  15,890  24,774  31,780 
Loss (gain) on disposal and deemed disposal of investments 393  213  (77,737) (1,525) (77,524)
(Gain) loss on fair value change of investments (1,282) (1,285) 2,235  18,850  950 
Gain on extinguishment of debt and derivative (4,017) -  -  (6,132) - 
Interest expenses related to the convertible bonds’ amortization to face value 619  578  528  1,248  1,106 
Accretion, cumulative dividend and deemed dividend to subsidiaries’ preferred shareholders 2,250  2,566  2,566  4,500  5,132 
Income tax effects on non-GAAP adjustments 3,833  (2,311) (3,128) (685) (5,439)
Reconciling items on the share of equity method investments 12,774  724  (3,572) 23,917  (2,848)
Non-GAAP adjustments for net loss attributable to the non-controlling interest shareholders (629) (1,267) (1,115) (2,559) (2,382)
           
Non-GAAP net income attributable to controlling interest and common shareholders of JOYY Inc. 51,452  49,867  97,302  72,343  147,169 
           
           
           
Non-GAAP net income per ADS          
——Basic 0.72  0.71  1.45  1.00  2.14 
——Diluted 0.65  0.64  1.29  0.93  1.92 
           
Weighted average number of ADS used in calculating non-GAAP net income per ADS          
——Basic 71,893,282  70,451,631  67,273,951  72,604,421  68,854,013 
——Diluted 82,225,273  80,846,062  76,872,137  83,090,336  78,845,472 
           


 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
        
 Three Months Ended
 June 30, 2023
        
 BIGO All other Elimination(1) Total
 US$ US$ US$ US$
Net revenues       
Live streaming445,169  31,812  -  476,981 
Others25,885  44,860  (392) 70,353 
        
Total net revenues471,054  76,672  (392) 547,334 
        
Cost of revenues(2)(287,587) (62,069) 90  (349,566)
        
Gross profit183,467  14,603  (302) 197,768 
        
Operating expenses(2)       
Research and development expenses(41,727) (34,042) 229  (75,540)
Sales and marketing expenses(70,652) (16,574) 21  (87,205)
General and administrative expenses(12,587) (16,431) 52  (28,966)
        
Total operating expenses(124,966) (67,047) 302  (191,711)
        
Other income1,914  1,468  -  3,382 
        
Operating income (loss)60,415  (50,976) -  9,439 
        
Interest expenses(1,727) (2,643) 1,313  (3,057)
Interest income and investment income9,882  38,033  (1,313) 46,602 
Foreign currency exchange gains (losses), net22,031  (1,715) -  20,316 
Gain on disposal and deemed disposal of investments-  77,737  -  77,737 
(Loss) gain on fair value change of investments(2,460) 225  -  (2,235)
        
Income before income tax expenses88,141  60,661  -  148,802 
        
Income tax expenses(4,478) (904) -  (5,382)
        
Income before share of income in equity method investments, net of income taxes83,663  59,757  -  143,420 
        
Share of income in equity method investments, net of income taxes-  3,885  -  3,885 
        
Net income83,663  63,642  -  147,305 


(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and all other segments, and interest income and interest expenses generated from the loan between BIGO and all other segments.
         
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
         
 Three Months Ended
 June 30, 2023
         
 BIGO  All other  Total 
 US$  US$  US$ 
         
Cost of revenues410  615  1,025 
Research and development expenses2,532  2,994  5,526 
Sales and marketing expenses170  150  320 
General and administrative expenses700  1,527  2,227 
         


 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
      
 Three Months Ended
 June 30, 2023
      
 BIGO All other Total
 US$ US$ US$
      
Operating income (loss)60,415  (50,976) 9,439 
Share-based compensation expenses3,812  5,286  9,098 
Amortization of intangible assets from business acquisitions11,225  4,665  15,890 
      
Non-GAAP operating income (loss)75,452  (41,025) 34,427 
      
      
Net income83,663  63,642  147,305 
Share-based compensation expenses3,812  5,286  9,098 
Amortization of intangible assets from business acquisitions11,225  4,665  15,890 
Gain on disposal and deemed disposal of investments-  (77,737) (77,737)
Loss (gain) on fair value change of investments2,460  (225) 2,235 
Interest expenses related to the convertible bonds’ amortization to face value-  528  528 
Income tax effects on non-GAAP adjustments(1,415) (1,713) (3,128)
Reconciling items on the share of equity method investments-  (3,572) (3,572)
      
Non-GAAP net income (loss)99,745  (9,126) 90,619 
      


 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
        
 Three Months Ended
 March 31, 2023
        
 BIGO All other Elimination(1) Total
 US$ US$ US$ US$
Net revenues       
Live streaming446,586  73,807  -  520,393 
Others21,356  41,909  (30) 63,235 
        
Total net revenues467,942  115,716  (30) 583,628 
        
Cost of revenues(2)(293,705) (85,327) 30  (379,002)
        
Gross profit174,237  30,389  -  204,626 
        
Operating expenses(2)       
Research and development expenses(41,212) (34,563) -  (75,775)
Sales and marketing expenses(74,084) (23,515) -  (97,599)
General and administrative expenses(13,701) (18,268) -  (31,969)
        
Total operating expenses(128,997) (76,346) -  (205,343)
        
Other income2,950  298  -  3,248 
        
Operating income (loss)48,190  (45,659) -  2,531 
        
Interest expenses(1,463) (2,797) 1,151  (3,109)
Interest income and investment income9,216  36,070  (1,151) 44,135 
Foreign currency exchange losses, net(9,680) (241) -  (9,921)
Loss on disposal and deemed disposal of investments-  (213) -  (213)
Gain on fair value change of investments688  597  -  1,285 
        
Income (loss) before income tax expenses46,951  (12,243) -  34,708 
        
Income tax expenses(3,569) (4,589) -  (8,158)
        
Income (loss) before share of loss in equity method investments, net of income taxes43,382  (16,832) -  26,550 
        
Share of loss in equity method investments, net of income taxes-  (6,606) -  (6,606)
        
Net income (loss)43,382  (23,438) -  19,944 


(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and all other segments, and interest income and interest expenses generated from the loan between BIGO and all other segments. 
         
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
         
 Three Months Ended 
 March 31, 2023 
         
 BIGO  All other  Total 
 US$  US$  US$ 
         
Cost of revenues650  586  1,236 
Research and development expenses2,827  2,934  5,761 
Sales and marketing expenses96  138  234 
General and administrative expenses758  1,350  2,108 
         


 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
      
 Three Months Ended
 March 31, 2023
      
 BIGO All other Total
 US$ US$ US$
      
Operating income (loss)48,190  (45,659) 2,531 
Share-based compensation expenses4,331  5,008  9,339 
Amortization of intangible assets from business acquisitions11,225  4,665  15,890 
      
Non-GAAP operating income (loss)63,746  (35,986) 27,760 
      
      
Net income (loss)43,382  (23,438) 19,944 
Share-based compensation expenses4,331  5,008  9,339 
Amortization of intangible assets from business acquisitions11,225  4,665  15,890 
Loss on disposal and deemed disposal of investments-  213  213 
Gain on fair value change of investments(688) (597) (1,285)
Interest expenses related to the convertible bonds’ amortization to face value-  578  578 
Income tax effects on non-GAAP adjustments(1,415) (896) (2,311)
Reconciling items on the share of equity method investments-  724  724 
      
Non-GAAP net income (loss)56,835  (13,743) 43,092 
      


 
JOYY INC.
UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
        
 Three Months Ended
 June 30, 2022
        
 BIGO All other Elimination(1) Total
 US$ US$ US$ US$
Net revenues       
Live streaming480,446  84,793  -  565,239 
Others22,197  8,795  (133) 30,859 
        
Total net revenues502,643  93,588  (133) 596,098 
        
Cost of revenues(2)(309,271) (68,533) 133  (377,671)
        
Gross profit193,372  25,055  -  218,427 
        
Operating expenses(2)       
Research and development expenses(45,997) (16,879) -  (62,876)
Sales and marketing expenses(78,690) (19,725) -  (98,415)
General and administrative expenses(11,100) (12,580) -  (23,680)
        
Total operating expenses(135,787) (49,184) -  (184,971)
        
Other income3,601  1,685  -  5,286 
        
Operating income (loss)61,186  (22,444) -  38,742 
        
Interest expenses(1,117) (3,096) 857  (3,356)
Interest income and investment income1,750  17,049  (857) 17,942 
Foreign currency exchange gains (losses), net12,839  (330) -  12,509 
Loss on disposal and deemed disposal of investments-  (393) -  (393)
Gain on fair value change of investments-  1,282  -  1,282 
Gain on extinguishment of debt and derivative-  4,017  -  4,017 
        
Income (loss) before income tax expenses74,658  (3,915) -  70,743 
        
Income tax expenses(8,583) (14,361) -  (22,944)
        
Income (loss) before share of loss in equity method investments, net of income taxes66,075  (18,276) -  47,799 
        
Share of loss in equity method investments, net of income taxes-  (32,837) -  (32,837)
        
Net income (loss)66,075  (51,113) -  14,962 


(1) The elimination mainly consists of revenues and expenses generated from services among BIGO and all other segments, and interest income and interest expenses generated from the loan between BIGO and all other segments. 
         
(2) Share-based compensation was allocated in cost of revenues and operating expenses as follows:
         
 Three Months Ended 
 June 30, 2022 
         
 BIGO
 All other
 Total
 US$
 US$
 US$
         
Cost of revenues918  426  1,344 
Research and development expenses2,994  2,099  5,093 
Sales and marketing expenses193  89  282 
General and administrative expenses1,357  669  2,026 
         


 
JOYY INC.
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS OF UNAUDITED SEGMENT REPORT
(All amounts in thousands, except share, ADS and per ADS data)
       
 Three Months Ended
 June 30, 2022
       
 BIGO
 All other Total
 US$
 US$ US$
       
Operating income (loss)61,186  (22,444) 38,742 
Share-based compensation expenses5,462  3,283  8,745 
Amortization of intangible assets from business acquisitions11,225  1,140  12,365 
       
Non-GAAP operating income (loss)77,873  (18,021) 59,852 
       
       
Net income (loss)66,075  (51,113) 14,962 
Share-based compensation expenses5,462  3,283  8,745 
Amortization of intangible assets from business acquisitions11,225  1,140  12,365 
Loss on disposal and deemed disposal of investments-  393  393 
Gain on fair value change of investments-  (1,282) (1,282)
Gain on extinguishment of debt and derivative-  (4,017) (4,017)
Interest expenses related to the convertible bonds’ amortization to face value-  619  619 
Income tax effects on non-GAAP adjustments3,578  255  3,833 
Reconciling items on the share of equity method investments-  12,774  12,774 
       
Non-GAAP net income (loss)86,340  (37,948) 48,392 

 


JOYY Inc. American Depositary Shares

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